It takes real guts to start your own business, to survive those early lean years and then to scale within your means as you finally begin to expand your operations. If you’re visiting Mentored, you’re either at the beginning of this incredible journey or you’re already well on your way.
When I was invited to be a Mentor, I immediately asked myself what do Aussie small businesses really need to get on the front foot? The first idea that leapt to mind was financial fitness.
What do I mean by that? Financial fitness means understanding the basics of financial management. As dull as that sounds, it’s super important. Do you really know what a balance sheet does? Or, what the terms accrual and depreciation mean? It’s okay if you don’t – we all have to start somewhere. But you need to bring yourself up to speed so you can take an honest look at your own business and know exactly where you stand. That’s the first thing.
The second part of getting financially fit is having the right accounting solution for your business. I’m often out on the road talking to customers who work for themselves and I’m amazed by how many are still doing their expenses with pen and paper or using a desktop spreadsheet program. It’s so time consuming, and let’s face it, not always accurate. There are plenty of cloud-based accounting solutions on the market, like QuickBooks Online, that will help you organise your transactions, improve your cash flow and provide valuable insights on your business.
The third element of getting financially fit is knowing where to turn for support when you need it most. I’d recommend enlisting the help of an accountant or bookkeeper. If you’ve got a handle on the first aspect of financial fitness you’ll be able to have constructive conversations with your trusted financial advisor on how best to move forward. And if you’ve embraced the second aspect, you can work together in the cloud to refine your operations.
You can find many more tips on how to manage your business’ finances at the QuickBooks Resource Centre.
On behalf of Intuit Australia, I wish you all the very best and want you to know that even if you are a sole trader, you are not alone. Knowing where to turn for help when you need it most is half the battle, which is why Mentored is such a valuable asset for any small business.